NEW YORK (AP) – Toys R Us, the toy retailer struggling with $5 billion in debt and intense online competition, has filed for bankruptcy protection ahead of the key holiday shopping season – and says its stores will remain open for business as usual.
The company said the proceedings are a way for Toys R Us to work with its creditors on restructuring the debt beleaguering it. And it emphasized that its stores worldwide will serve customers while it works with suppliers and sells merchandise.
Filing for bankruptcy protection “will provide us with greater financial flexibility to invest in our business and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide,” Chairman and CEO Dave Brandon said.
Toys R Us operates two stores in Chattanooga – a Toys R Us store on Hamilton Place Boulevard and a Babies R Us nearby on Gunbarrel Road. The toy retailer closed its Toys R Us in January 2015 after operating for 20 years.
The move comes as retailers head into the busiest shopping time of year. The company said it was “well-stocked as we prepare for the holiday season and are excited about all of our upcoming in-store events.”